According to the Policy Irrelevance Proposition

question 11

Multiple Choice

According to the policy irrelevance proposition

• A) monetary policy can effectively reduce the rate of unemployment in the short run.
• B) workers are not rational in the long run.
• C) the Phillips curve slopes upward, not downward as traditionally assumed.
• D) expansionary monetary policy will only lead to a higher rate of inflation in the long run.

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Definitions:

Lophotrochozoa

A branch of the protostomes that includes the flatworms, nemerteans (proboscis worms), mollusks, annelids, and the lophophorate phyla.

Ecdysozoa

A branch of the protostomes that includes animals that molt, such as the rotifers, nematodes, and arthropods.

Protostomes

A group in the animal kingdom characterized by the mouth developing before the anus during embryonic development.

Coelom

A fluid-filled body cavity found in most multicellular animals that is lined by tissue derived from mesoderm.